Over 13,000 hospitality closures since March 2020
Nearly 90% of Q4 closures were independent businesses who had been weakened by the pandemic and forced to close in 2022
Over 13,000 hospitality businesses have closed in Britain since the start of the pandemic, according to data from the CGA and Alix Partners.
A rise in inflation and energy bills caused a net decline of 1,611 businesses in the sector in Q4, a market contraction of 1.6% in three months. This is equivalent to nearly 18 net closures a day.
Across the whole of 2022 the hospitality sector lost 4,809 businesses with the majority of closures coming in the second half of the year. This means that hospitality lost more businesses in 2022 than in 2021 and only marginally fewer than in 2020.
Nearly 90% of Q4 closures were independent businesses who had been weakened by the pandemic and forced to close in 2022.
Karl Chessell, CGA director for hospitality operators and food, EMEA, said: “While Covid took a heavy toll on hospitality, these figures suggest the energy crisis is having an even more damaging impact. Given all the pressures, a drop of more than 1,600 venues in three months is quite shocking, and every closure represents a sad loss of jobs and disappointment for communities and operators.
“Although consumers remain eager to visit pubs, bars and restaurants, thousands of vulnerable businesses remain at risk after three years of turmoil from Covid and inflation. Urgent and targeted government support is needed to sustain them through what promises to be another very difficult year.”
Graeme Smith, managing director, AlixPartners, said: “These latest figures are a stark snapshot of what the sector has faced over the course of the past three years. Since March 2020, 13,037 site closures – equivalent to 13 sites lost every day.
“Not every business is suffering equally, but even the stronger operators with robust balance sheets are opting to conserve cash and wait out this storm at the current time.”
